Ballina, Co Mayo, is to lose its biggest employer with the phased closure of a car-components manufacturing plant.
Henniges Elastomer Ireland had recently undergone a major restructuring. News of the closure, which was largely put down to wage inflation costs, was handed down from corporate headquarters of Gencorp in Germany on Wednesday night and delivered to staff yesterday morning.
The news was described as "a disaster" by a SIPTU representative, Mr Sean Nolan, coming on top of the loss of 90 jobs in Dawn Meats in Ballyhaunis announced the previous day.
The general manager, Mr Michael O'Donnell, said carparts manufacturing was a competitive global industry. He said the workers had made an invaluable contribution in the restructuring and had been committed and flexible in their approach to reaching targets set down in the operating plan.
"The workforce has been and remains an excellent one. They have delivered on every challenge they faced," he said. The phased closure of the Henniges plant is to take place between now and September. When sub-contractors and outsource workers are included, up to 220 jobs are expected to be lost in the north Mayo area.
The company is a mile outside Ballina town in a 6,500 sq m premises. It manufactures parts for the European car manufacturers, Opel, Mercedes, VW, BMW and Audi.
The final closure date has been listed as September 30th, 2001. Locals hope the staggered nature of the shutdown will give the IDA time to secure a replacement business for the town.
Henniges Elastomers was established in Ballina in 1989. Last year the company paid £5 million in wages, an estimated £1 million of which was spent in the consumer market locally.
Local politicians rallied around workers yesterday, vowing to lobby the Government, the Tanaiste, Ms Harney, who initiated the North Mayo Task Force and the IDA to secure a new industry.
Workers at the plant had to operate on a shift rotation basis (one week day-shift, one evening-shift, one all-night shift). Wages averaged just under £300 a week.
Mr O'Donnell said it had been one of his hardest tasks ever to make the announcement to workers.
"It is just a nail in the coffin. We were hitting our targets. The plant is actually singing at the moment. We certainly were not expecting the rug to be pulled like this from under us.
"But the fact is we are working in a very competitive market. We export 100 per cent of our goods, import 100 per cent of our raw material and freight costs have soared. All of this has militated against our competitiveness."